Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED BALANCE SHEETS

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CONSOLIDATED BALANCE SHEETS - USD ($)
Sep. 30, 2015
Dec. 31, 2014
Current assets:    
Cash $ 3,408,839 $ 5,082,569
Accounts receivable - net of allowance for bad debt of $0 and $0 for September 30, 2015 and December 31, 2014 2,326,717 216,997
Bonds posted with courts 1,794,226 1,946,196
Prepaid expenses and other current assets, net of discounts of $3,414 and $0 for September 30, 2015 and December 31, 2014 114,953 438,391
Total current assets 7,644,735 7,684,153
Other assets:    
Property and equipment, net of accumulated depreciation of $55,571 and $16,135 for September 30, 2015 and December 31, 2014 70,680 53,828
Intangible assets, net of accumulated amortization of $14,931,649 and $6,550,528 for September 30, 2015 and December 31, 2014 43,753,217 43,363,832
Deferred tax assets 10,529,693 4,789,293
Other non current assets, net of discounts $5,760 and $0 for September 30, 2015 and December 31, 2015 11,238  
Goodwill 4,573,450 4,894,208
Total other assets 58,938,278 53,101,161
Total Assets 66,583,013 60,785,314
Current liabilities:    
Accounts payable and accrued expenses 8,992,574 3,293,746
Clouding IP earn out - current portion 327,757 2,092,000
Notes payable, net of discount of $703,762 and $82,010 for September 30, 2015 and December 31, 2014 19,384,416 16,560,000
Total current liabilities 28,704,747 21,945,746
Long-term liabilities    
Notes payable, net of discount and loan fees of $1,617,885 and $64,925, for September 30, 2015 and December 31, 2014 13,876,928 5,403,065
Other non current liability 51,092  
Deferred tax liability 1,056,406 1,823,884
Revenue sharing liability 1,000,000  
Clouding IP earn out - long-term portion 6,222,895 7,360,000
Total long-term liabilities 22,207,321 14,586,949
Total liabilities 50,912,068 36,532,695
Stockholders' equity:    
Preferred stock Series B, $.0001 par value, 50,000,000 shares authorized: 798,670 and 932,000 issued and outstanding at September 30, 2015 and December 31, 2014 80 93
Common stock, $.0001 par value, 200,000,000 shares authorized: 14,550,475 and 13,791,460 issued and outstanding at September 30, 2015 and December 31,2014 1,456 1,379
Additional paid-in capital 42,014,873 36,977,169
Accumulated other comprehensive loss (973,063) (388,357)
Accumulated deficit (25,372,401) (12,337,665)
Total stockholders' equity 15,670,945 24,252,619
Total liabilities and stockholders' equity $ 66,583,013 $ 60,785,314